Industrial production growth slowed to three percent in March (Lead)

New Delhi, May 12 (IANS) India’s industrial production growth slowed to just three percent in March 2008, compared to a 14.8 percent growth in March 2007, according to government data released here Monday. The Central Statistical Organisation (CSO) released the index for industrial production (IIP) for the month of March 2008, and for the period April-March 2007-08, depicting a major slowdown in industrial production growth.

As per the CSO data, the overall industrial production growth in fiscal 2007-08 was 8.1 percent, compared to an 11.6 percent growth in 2006-07.

The sectors that actually showed negative growth in March this year included cotton textiles; textile products including wearing apparel; wood and wood products, furniture and fixtures; metal products and parts except machinery and equipment; and transport equipment and parts.

The negative growth in the metal products and parts except machinery and equipment sector in March was to the tune of 25.8 percent.

News of the slowdown in industrial production growth comes as the government struggles to rein in inflation, which soared to 7.61 percent for the week ended April 26.

“The major industrial products are showing signs of slowdown with the textile sector taking hit with negative growth. It is a major concern,” a senior official at Planning Commission told IANS.

“The growth in industrial production in January this year was 5.3 percent, while the overall growth in April-January 2007-08 was 8.7 percent against 8.1 percent recorded for April-March 2007-08,” the official added.